Accounting Policies of Balmer Lawrie & Company Ltd. Company

Mar 31, 2023

Notice of the 106^th Annual General Meeting

Notice is hereby given that the 106^th Annual General Meeting (AGM) of the Members of Balmer
Lawrie & Co. Ltd. will be held on Wednesday, 27^th September, 2023 at 12 Noon IST through Two¬
way Video Conferencing (“VC”) or Other Audio-Visual Means (“OAVM”) to transact the following
businesses:

ORDINARY BUSINESS:

1. To consider and adopt the Audited Financial Statements of the Company (both Standalone
and Consolidated) for the Financial Year ended on 31^st March, 2023 together with the
Reports of the Board of Directors and Auditors thereon and other Statements attached
thereto along with the Comments of Comptroller and Auditor General of India thereon and
in this connection to pass the following Ordinary Resolution:

“RESOLVED THAT the Audited Financial Statements of the Company (both Standalone and
Consolidated) for the Financial Year ended on 31^st March, 2023 together with the Reports of the
Board of Directors and Auditors thereon and other Statements attached thereto along with the
Comments of Comptroller and Auditor General of India thereon, be and are hereby considered
and adopted.”

2. To declare dividend for the Financial Year ended on 31^st March, 2023 and in this connection
to pass the following Ordinary Resolution:

“RESOLVED THAT in accordance with the recommendation of the Board of Directors, dividend
at the rate of Rs.7.50 (Rupees Seven and Paise Fifty only) per Equity Share for the Financial
Year ended 31^st March, 2023 be and is hereby declared on 17,10,03,846 Equity Shares of the
Company, each of the paid-up value of Rs.10/- (Rupees Ten only) and the same be paid out of the
profits of the Company for the Financial Year ended 31^st March, 2023.”

3. To appoint a Director in place of Shri Adika Ratna Sekhar (DIN: 08053637), a Director who
retires by rotation and being eligible, offers himself for reappointment and in this connection
to pass the following Ordinary Resolution:

“RESOLVED THAT Shri Adika Ratna Sekhar (DIN: 08053637), a Director retiring by rotation, be
and is hereby reappointed as a Director of the Company, whose period of office shall be subject to
retirement by rotation.”

4. To fix the remuneration of the Statutory Auditors of the Company (including Branch
Auditors) for the Financial Year 2023-24 and in this connection to pass the following
Ordinary Resolution:

“RESOLVED THAT pursuant to Section 142 and other applicable provisions of the Companies
Act, 2013, the Board of Directors be and are hereby authorized to determine the amount of
remuneration payable to the Statutory Auditors of the Company (including Branch Auditors) as
and when appointed by the Comptroller and Auditor General of India under Section 139(5) and
other applicable provisions of the Companies Act, 2013 including reimbursement of out-of-pocket
expenses, if any, incurred by the said Auditors in connection with the audit of Annual Accounts of
the Company for the Financial Year 2023-24.”

SPECIAL BUSINESS:

The item of Special Business as appearing under Item Nos. 5, 6, 7 and 8 have been considered
to be unavoidable by the Board of Directors of the Company and hence, the Members are
requested to consider and if thought fit, to pass the following Ordinary Resolutions:

5. Appointment of Shri Saurav Dutta (DIN: 10042140) as Director (Finance) and fixation of
terms of his appointment:

"RESOLVED THAT pursuant to the provisions of the Companies Act, 2013 read with allied
Rules, Regulation 17(1C) and other applicable provisions of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in line with the
recommendation of the Nomination and Remuneration Committee and Letter bearing reference no.
CA-31024/1/2021-PNG (36607) dated 31^st January, 2023 received from the Ministry of Petroleum
and Natural Gas, Government of India, (‘Administrative Ministry’) and the Company having received
a Notice in writing, from a Member proposing his candidature for the office of Director, approval
be and is hereby accorded for appointment of Shri Saurav Dutta (DIN: 10042140) as a Wholetime
Director to the post of Director (Finance) of the Company, in the scale of pay of Rs.1,60,000 -
2,90,000/- (IDA) for a period of five years with effect from the date of his assumption of charge of
the post or till the date of his superannuation, or until further orders from the Administrative Ministry,
whichever is the earliest and whose period of office shall be subject to retirement of Directors by
rotation and on such other terms and conditions as contained in Letter bearing reference no. CA-
31024/1/2021-PNG (36607) dated 31^st January, 2023 from the Administrative Ministry and any
further instructions from the Administrative Ministry.”

6. Appointment of Shri Abhijit Ghosh, (DIN: 10042785) as Director (Human Resource and
Corporate Affairs) and fixation of terms of his appointment:

"RESOLVED THAT pursuant to the provisions of the Companies Act, 2013 read with allied
Rules, Regulation 17(1C) and other applicable provisions of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in line with the
recommendation of the Nomination and Remuneration Committee and Letter bearing reference no.
CA-31024/4/2021-PNG (39793) dated 1^st February, 2023 received from the Ministry of Petroleum
and Natural Gas, Government of India, (‘Administrative Ministry’) and the Company having received
a Notice in writing, from a Member proposing his candidature for the office of Director, approval be
and is hereby accorded for appointment of Shri Abhijit Ghosh, (DIN: 10042785) as a Wholetime
Director to the post of Director (Human Resource and Corporate Affairs) of the Company, in the
scale of pay of Rs.1,60,000 - 2,90,000/- (IDA) with effect from the date of his assumption of
charge of the post till the date of his superannuation i.e. 30^th November, 2027 or until further
orders from the Administrative Ministry, whichever is the earlier and whose period of office shall be
subject to retirement of Directors by rotation and on such other terms and conditions as contained
in Letter bearing reference no. CA-31024/4/2021-PNG (39793) dated 1^st February, 2023 from the
Administrative Ministry and any further instructions from the Administrative Ministry.”

7. Appointment of Shri Rajinder Kumar, (DIN: 09651096) as Government Nominee Director
and fixation of terms of his appointment:

"RESOLVED THAT pursuant to the provisions of the Companies Act, 2013 read with allied
Rules, Regulation 17(1C) and other applicable provisions of Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in line with the
recommendation of the Nomination and Remuneration Committee and Letter bearing reference
no. CA-31032/1/2021-PNG-37493 dated 16^th May, 2023 received from the Ministry of Petroleum
and Natural Gas, Government of India, (‘Administrative Ministry’) and the Company having
received a Notice in writing, from a Member proposing his candidature for the office of Director,
approval be and is hereby accorded for appointment of Shri Rajinder Kumar, (DIN: 09651096) as

a Government Nominee Director of the Company with effect from 16^th May, 2023 for a period of
three years on co-terminus basis or until further orders from the Ministry of Petroleum and Natural
Gas, Government of India, (‘Administrative Ministry’), whichever is earlier and whose period of
office shall be subject to retirement of Directors by rotation and on such other terms and conditions
as contained in Letter bearing reference no. CA-31032/1/2021-PNG-37493 dated 16^th May, 2023
from the Administrative Ministry and any further instructions from the Administrative Ministry.”

8. Ratification of Remuneration of Cost Auditor for the Financial Year 2023-24:

"RESOLVED THAT pursuant to the provisions of Section 148(3) and other applicable provisions
of the Companies Act, 2013 read with Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules,
2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in
force), the remuneration of M/s. S. Dhal & Co., Cost Accountants in Practice, (Firm Registration
No.000197) whose appointment and remuneration was recommended by the Audit Committee
and approved by the Board of Directors as the Cost Auditor to conduct the audit of the Cost
Records maintained by the Company for the Financial Year ending on 31^st March, 2024 at a fee of
Rs.1,20,000/- (Rupees One Lakh Twenty Thousand only) (inclusive of all fees) be and is hereby
ratified.

RESOLVED FURTHER THAT the Board of Directors of the Company (including Audit Committee)
be and is hereby authorised to do all acts and take all such steps as may be necessary, proper or
expedient to give effect to this resolution.”

Registered Office: By Order of the Board of Directors

Balmer Lawrie & Co. Ltd. Kavita Bhavsar

21, Netaji Subhas Road, Company Secretary

Kolkata - 700 001 FCS No: 4767

Date: 7^th August, 2023

Place: Kolkata

NOTES

A. Annual General Meeting shall be held through Video Conferencing or Other Audio-Visual
Means:

1. As per para 3 and para 4 of Ministry of Corporate Affairs ("MCA”) General Circular No. 20/2020
dated 5^th May, 2020 read with sub para 3-A of General Circular No. 14/2020 dated 8^th April, 2020,
sub para (i) A of General Circular No. 17/2020 dated 13^th April, 2020 and General Circular No.
10/2022 dated 28^th December, 2022 ("the MCA Circulars”), this AGM is scheduled to be held
through VC/OAVM and voting for items to be transacted in the Notice of this AGM shall be only
carried out through remote electronic voting process or electronic voting during the AGM. Hence,
physical attendance of the Members is not required at the AGM.

2. Further, as per the MCA Circulars and Securities and Exchange Board of India (SEBI) Circular
bearing reference no. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15^th January, 2021 read with
SEBI Circular bearing reference no. SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated 13^th May, 2022
and SEBI Circular bearing reference no. SEBI/HO/CFD/PoD-2/P/CIR/2023/4 dated 5^th January,
2023 (referred to as "the SEBI Circulars”), the requirement in respect of sending physical copies
of the Annual Report to the Members, the Notice of the Annual General Meeting and the proxy
forms (for General Meetings held through electronic mode) have been relaxed for Listed Entities
till 30^th September, 2023. Accordingly, the Notice of the AGM along with the Annual Report for the
Financial Year 2022-23 is being sent only through electronic mode to the Members whose e-mail

addresses are registered with the Registrar and Share Transfer Agent (RTA) of the Company or
with the Depositories. The Notice calling the AGM and the Annual Report shall be uploaded on the
website of the Company. The Notice shall be accessible on the websites of the Stock Exchanges

i.e. BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at www.
nseindia.com and the Notice of AGM shall also be available on the website of KFin Technologies
Limited (agency for providing the e-voting facility) at https://www.evoting.kfintech.com.

3. The cut-off date for ascertaining the Members who would be entitled to attend the AGM and/or
cast their vote electronically is Wednesday, 20^th September, 2023 (end of day).

4. Pursuant to the provisions of the Companies Act, 2013, a Member entitled to attend and vote at
the AGM is entitled to appoint a proxy to attend and vote on his/her behalf and the proxy need not
be a Member of the Company. However, as per the MCA Circulars and SEBI Circulars, the facility
to appoint proxy to attend and cast vote on behalf of the Members shall not be available for this
AGM as the aGm is being held through VC/OAVM and the physical attendance of Members at
the AGM has been dispensed with. Accordingly, the facility for appointment of proxies by the
Members will not be available for the AGM and hence, the Proxy Form and Attendance Slip
are not annexed to this Notice.

5. The Body Corporates are entitled to appoint Authorised Representatives to attend the AGM through
VC/OAVM and participate thereat and cast their votes through e-voting as per MCA Circulars.
Pursuant to Sections 112 and 113 of the Companies Act, 2013, Corporate Members are requested
to send a Certified Copy of the Board Resolution/Authority Letter together with attested specimen
signature(s) of the duly authorized representative(s) to the Scrutinizer by e-mail at kothari.navin@
yahoo.com with a copy marked to [email protected] authorizing their representative to attend
the AGM through VC/OAVM and vote on their behalf. The abovementioned documents may also
be uploaded in the e-voting module in their login.

6. The attendance of the Members attending the AGM through VC/OAVM will be counted for the
purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.

7. The Members can start joining the AGM through VC/OAVM 45 minutes before the scheduled time of
the commencement of the Meeting by following the procedure mentioned in this Notice. The facility
of participation at the AGM through VC/OAVM will be made available on first come first serve basis.
This will not include large Shareholders (i.e. Shareholder’s holding 2% or more shareholding),
Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairperson(s) of
the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship
Committee, Auditors, etc. who are allowed to attend the AGM without restriction on account of first
come first serve basis.

8. The recorded transcript of the AGM shall also be made available on the website of the Company
at www.balmerlawrie.com as soon as possible after the AGM is concluded.

9. To prevent fraudulent transactions, Members are advised to exercise due diligence and notify the
Company or Depositories of any change in KYC particulars or demise of the holder as soon as
possible. Members are also advised not to leave their demat account(s) dormant for long. Periodic
Statement of holdings should be obtained from the concerned Depository Participant and holdings
should be verified from time to time.

10. In terms of Sections 139, 142 and other applicable provisions of the Companies Act, 2013, though
the Statutory Auditors of a Government Company are appointed by the Comptroller and Auditor
General of India, the remuneration of the Statutory Auditors is fixed at the General Meeting or in
such manner as may be determined therein. Therefore, an item on fixation of remuneration of the
Statutory Auditors of the Company (including Branch Auditors) for the Financial Year 2023-24 has
been included in the Notice of the AGM under item no. 4 of the Ordinary Business which requires
passing of Resolution by simple majority.

11. As per the provisions of Clause 3.A.II. of the General Circular No. 20/2020 dated 5^th May, 2020
read with General Circular No. 10/2022 dated 28^th December, 2022 issued by the Ministry of
Corporate Affairs, the matters of Special Business as appearing at Item Nos. 5, 6, 7 and 8 of the
accompanying Notice are considered to be unavoidable by the Board and hence, forms part of
this Notice.

12. The Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 relating to
the matters of Special Business in respect of Item Nos. 5, 6, 7 and 8 to be transacted at the
AGM of the Company are annexed hereto. All documents referred in the notice of the AGM and
the Explanatory Statement including the Statutory Registers shall be available electronically for
inspection by the Members during the AGM. Members seeking to inspect such documents can
send an email to [email protected].

13. Brief particulars of the Directors proposed to be re-appointed/appointed, as mandated under
Regulation 36(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (as amended) and in terms of Para 1.2.5 of Secretarial Standard
on General Meetings (SS-2) is annexed hereto and forms part of this Notice.

14. In case of joint holders, the Member whose name appears as the first holder in the order of names
as per the Register of Members of the Company shall be entitled to vote at the AGM. Several
executors or administrators of a deceased member in whose name any share is registered shall
for the purpose of Article 65 of Articles of Association of the Company be deemed to be Members
registered jointly in respect thereof.

15. The Board of Directors at its Meeting held on 25^th May, 2023 had recommended a dividend of
Rs. 7.50 (Rupees Seven and Paise Fifty Only) per Equity Share of the face value of Rs.10/-
each, fully paid-up. If the dividend as recommended by the Board of Directors is declared at the
AGM, dividend shall be paid, subject to deduction of income-tax at source, wherever applicable,
to those Members of the Company who are holding shares of the Company as on Wednesday,
20^th September, 2023 (end of day) within the statutory time limit of 30 days from the date of such
declaration in such mode as prescribed under SEBI Circular bearing reference no. CIR/MRD/
DP/10/2013 dated 21^st March, 2013.

16. Non-resident Indian members are requested to inform the RTA, M/s.KFin Technologies Limited,
Hyderabad immediately about:

a. Change in their residential status on return to India for permanent settlement.

b. Particulars of their bank account maintained in India with complete name, branch, account
type, account number and address of the bank with pin code number, if not furnished earlier.

Instructions on Tax Deductible (TDS) at Source on Dividend:

17. As per provisions of the Income Tax Act, 1961 as amended by and read with the provisions of the
Finance Act, 2020, with effect from 1^st April, 2020, dividend declared and paid by the Company is
taxable in the hands of shareholders and the Company is required to deduct tax at source (TDS)
from dividend paid to the shareholders at the applicable rates specified u/s 194 of the Income Tax
Act, 1961. In order to enable determination of the applicable TDS rate, Members are requested to
submit the relevant documents on or before Friday, 15^th September, 2023.

For Resident Shareholders:

A. Where, the Permanent Account Number (PAN) is available and is valid:

i. Tax shall be deducted at source in accordance with the provisions of Section 194 of the
Income Tax Act, 1961 at 10% (subject to change) on the amount of dividend payable.

ii. No tax shall be deducted in the case of a resident individual shareholder, if:

a. the amount of such dividend in aggregate paid or likely to be paid during the Financial
Year does not exceed Rs. 5,000; OR

b. the shareholder provides duly signed Form 15G or Form 15H (as applicable) not later
than Friday, 15^th September 2023, (end of day) to the Registrar and Share Transfer
Agent of the Company (RTA), provided that all the prescribed eligibility conditions are
met.

B. Where the PAN is either not available or is invalid, tax shall be deducted at the prescribed
rate or at a rate of 20% (subject to change), whichever is higher as per Section 206AA of the
Income Tax Act, 1961. Shareholders may also submit any other documents to the Company’s
registrar and share transfer agent, KFin Technologies Limited as prescribed under the Income
Tax Act,1961 to claim a lower / Nil withholding tax.

Please note that as per Section 206AB of the Income Tax Act,1961 the tax shall be
deductible at the higher rates prescribed under the provision if the following conditions are
satisfied:

• Deductee (shareholder) has not filed the return of income for both F.Y. 2021-22 and F.Y.
2022-23.

• The due date to file such return of income, as prescribed under section 139, has expired;
and

• The aggregate amount of tax deducted and collected at source is Rs. 50,000 or more in
each of these 2 previous years.

Also, shareholders who are required to link their Aadhaar number with their PAN in terms of the
provisions of Section 139AA (2) of the Income Tax Act, 1961, it is advisable to link their PAN
with Aadhaar in order to avoid higher rate of TDS.

For Non-Resident Shareholders:

i. Tax is required to be deducted in accordance with the provisions of the Income Tax Act, 1961
at applicable rates in force. As per relevant provisions, tax shall be deducted at the rate of 20%
(plus applicable surcharge and cess) on the amount of dividend payable.

ii. As per the provisions of the Income Tax Act, 1961, the non-resident shareholder may have an
option to be governed by the provisions of the Double Tax Avoidance Treaty (DTAA) between
India and the country of tax residence of the shareholder, if such DTAA provisions are more
beneficial to them. To avail the DTAA benefits, the non-resident shareholder shall furnish the
following documents by not later than Friday, 15^th September 2023 (end of day) to the RTA of
the Company:

a. Self-attested copy of Permanent Account Number (PAN), if allotted by the Indian Income
Tax Authorities;

b. Self-attested Tax Residency Certificate (TRC) issued by the tax authorities of the country
of which shareholder is a resident, evidencing and certifying shareholder’s tax residency
status during the Financial Year 2023-24;

c. Completed and duly signed Self-Declaration in Form 10F;

d. Self-declaration in the prescribed format certifying on the following points:

• Shareholder is and will continue to remain a tax resident of the country of its residence
during the Financial Year 2023-24.

• Shareholder is eligible to claim the beneficial DTAA rate for the purposes of tax
withholding on dividend declared by the Company;

• Shareholder has no reason to believe that its claim for the benefits of the DTAA is
impaired in any manner;

• Shareholder is the ultimate beneficial owner of his shareholding in the Company and
dividend receivable from the Company and

• Shareholder does not have a taxable presence or a permanent establishment in India
during the Financial Year 2023-24.

iii. The Company is not obligated to apply the beneficial DTAA rates at the time of tax deduction/
withholding on dividend amounts. Application of beneficial DTAA Rate shall depend upon the
completeness and satisfactory review by the Company, of the documents submitted by Non¬
Resident shareholder.

iv. Notwithstanding Paragraph ii above, tax shall be deducted at source @20% (plus applicable
surcharge and cess) on dividend paid to Foreign Institutional Investors ("FII”) and Foreign
Portfolio Investors ("FPI”). Such TDS rate shall not be reduced on account of the application of
the lower DTAA rate or lower tax deduction order, if any.

18. The Members are requested to update their PAN with the Company’s RTA: KFin Technologies
Limited (in case of shares held in physical mode) and with the depositories (in case of shares held
in demat mode).

For All Shareholders

In accordance with rule 37BA of Income Tax Rules, where shares are held by intermediaries/
stockbrokers, then such intermediaries/ stockbrokers can provide requisite declarations and the
details of such beneficial shareholders along with self-declaration that the shareholders are the
beneficial owners to the Company’s Registrar and Share Transfer Agent on or before Friday, 15^th
September 2023. Hence, the TDS will be applied by the Company on the PAN of the beneficial
shareholders.

If there is any change in the above information, you are requested to update your records such as
tax residential status, Permanent Account Number (PAN) and register your email address, mobile
numbers and other details with your relevant depositories through your depository participants in
case you are holding shares in dematerialized form and if you are holding shares in physical mode,
you are requested to furnish details to the Company’s Registrar and Share Transfer Agent, KFin
Technologies Limited. Please also note that in order to claim credit of TDS deducted by Balmer
Lawrie & Co. Limited, it is mandatory to have valid PAN updated at depository’s register. The
Company shall not be held liable for unavailability of TDS credit due to invalid/incorrect
PAN available in depository’s record. The Company is obligated to deduct tax at source
based on the records available with RTA and no request will be entertained for revision of
TDS return.

In the event of any income tax demand (including interest, penalty, etc.) arising from any
misrepresentation, inaccuracy or omission of information provided by the Shareholder(s),
such Shareholder(s) will be responsible to indemnify the Company and also provide the
Company with all information/documents and co-operation in any appellate proceedings.

Unpaid/Unclaimed dividend:

19. Pursuant to the provisions of the Companies Act, 2013 read with Rules made thereunder
(as amended), any money transferred to the Unpaid Dividend Account of a Company
which remains unpaid or unclaimed for a period of seven years from the date of such
transfer shall be transferred by the Company along with interest accrued (if any)
thereon to ‘Investor Education and Protection Fund’ (IEPF) constituted by the Central
Government. Accordingly, the Company had during Financial Year 2022-23 transferred
Rs.3,816,216/- to IEPF which were belonging to the Members whose dividend were unpaid/
unclaimed for the Financial Year 2014-15. Pursuant to the provisions of the Companies
Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016 (as amended), all the shares of the Company on which
dividend has been unpaid or unclaimed for seven consecutive years or more are required to be
transferred to IEPF. Accordingly, the Company had transferred 58,506 Equity Shares of the Paid-
up Value of Rs.10/- each belonging to 104 Members to IEPF within the prescribed time limit.

20. Members are requested to note that the unclaimed dividend amount for the Financial Year ended
31^st March, 2016 (declared and paid in 2016) will be due for transfer to IEPF on 29^th October,
2023. All the shares in respect of which dividend has not been claimed for 7 consecutive years or
more shall be transferred by the Company to IEPF as per the provisions of Section 124(6) of the
Companies Act, 2013 and the allied Rules.

21. Further, pursuant to provisions of the Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (as amended), the Company has uploaded details of
unpaid and unclaimed dividend amounts lying with the Company as on 31^st March, 2022 on its
website at www.balmerlawrie.com and also on the website of the IEPF.

22. Further, Members are requested to note that in respect of dividend and shares transferred to IEPF,
Members are entitled to claim the same from IEPF Authority by submitting an online application
in the prescribed Form IEPF- 5 available on the website www.iepf.gov.in and sending a physical
copy of the same duly signed by the claimant along with the requisite documents enumerated in
Form IEPF-5 to the Nodal Officer of the Company at the Registered Office of the Company for
verification of his/her claim.

The details of the Nodal Officer of the Company for IEPF are as under:

a. Name of Nodal Officer:- Ms. Kavita Bhavsar, Company Secretary

b. Address: Balmer Lawrie & Co. Ltd., 21, Netaji Subhas Road, Kolkata-700 001

c. E-mail ID: [email protected]

In case entitlement letter is required, the applicant of the claim are advised to follow the process
stated in circular issued by the IEPF Authority in this regard read with Rule 7(9) of the Investor
Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016
(as amended).

23. Book Closure - The Register of Members and the Share Transfer Books of the Company shall
remain closed from Thursday, 21^st September, 2023 to Wednesday, 27^th September, 2023
(both days inclusive).

24. As an ongoing endeavour to enhance Members experience and leverage new technology M/s.
KFin Technologies Limited, Registrar and Share Transfer Agent of the Company, have been
continuously developing new applications. The list of applications that have been developed for
the Members are as follows:

Investor Support Centre: A webpage is accessible via any browser enabled system. Members
can use a host of services like Post a Query, Raise a service request, Track the status of their
DEMAT and REMAT request, Dividend status, Interest and Redemption status, Upload exemption
forms (TDS), Download all ISR and other related forms.

URL: https://ris.kfintech.com/clientservices/isc

eSign Facility: Common and simplified norms for processing investor’s service requests by RTAs
and norms for furnishing PAN, KYC details and Nomination requires that eSign option be provided
to Members for raising service requests. This facility can be accessed via the link below:

URL: https://ris.kfintech.com/clientservices/isr

KYC Status: Shareholders can access the KYC status and other requisite information regarding
their folio by accessing the following link:

URL: https://ris.kfintech.com/clientservices/isc/kvcqrv.aspx

KPRISM: A mobile application as well as a webpage, which allows users to access Folio details,
Interest and Dividend status, FAQs, ISR Forms and full suite of other investor services.

URL: https://kprism.kfintech.com/signin.aspx

WhatsApp: In order to facilitate the Members, a WhatsApp number has been dedicated by
M/s. KFin Technologies Limited, that can be used for a bouquet of services offered by the RTA.
WhatsApp Number: (91) 910 009 4099

25. Securities and Exchange Board of India (SEBI), vide, Circular No. SEBI/HO/MIRSD/MIRSD-PoD-
1/P/CIR/2023/37 dated 16^th March, 2023 had prescribed the common and simplified norms for
processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and
Nomination. As per the said circular it shall be mandatory for all holders of physical securities in
listed companies to furnish PAN, Nomination, Contact details, Bank A/c details and Specimen
signature for their corresponding folio numbers. The folios wherein any one of the abovementioned
document/details are not available on or after 1^st October, 2023, shall be frozen by the RTA. Frozen
folios shall be referred by the RTA / listed company to the administering authority under the
Benami Transactions (Prohibitions) Act,1988 and/or Prevention of Money Laundering Act, 2002, if
they continue to remain frozen as on 31^st December, 2025. The RTA shall revert the frozen folios to
normal status upon receipt of all the documents/details as referred in the said circular. Accordingly,
the shareholders are requested to kindly submit the requisite documents in the prescribed formats
to the RTA. The aforesaid circular has also stipulated standardized, simplified and common norms
for processing investor service requests e.g. mismatch in signature, mismatch in name, change
in name, updation of bank details and contact details, etc. Members holding securities in physical
mode, inter-alia, for registering/updating the KYC details and for the processing of various service
requests are requested to kindly refer to the requisite forms stipulated in the aforesaid circular.

As per proviso to Regulation 40(1), SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (as amended), requests for effecting transfer of securities shall not be processed
unless the securities are held in the dematerialised form with a depository. Further, transmission
or transposition of securities held in physical or dematerialised form shall be effected only in
dematerialised form. In view of above, Members are requested to consider dematerializing their
shares held in physical form.

26. Members are requested to submit their investor service requests at the earliest to KFin Technologies
Limited, Unit-Balmer Lawrie & Co. Ltd., the Registrar and Share Transfer Agent (RTA) of the
Company in the prescribed format at:

i. 2/1, Russel Street, 4^th Floor, Kankaria Centre, Kolkata 700016; or

II. Selenium Building, Tower-B, Plot No. - 31 & 32, Financial District, Nanakramguda,
Serilingampally, Rangareddi, Hyderabad, Telangana-500032,

iii. Toll free No. - 18003094001

iv. Email: [email protected]

It may be noted that the particulars of the shareholder as on the cut-off date shall be taken into
consideration for the purpose of providing investor services and entitlements.

Members are further requested:

a) To note that Members who are holding Shares in dematerialized form, the Bank particulars
registered with their respective Depository Participants (DPs) will be used by the Company
for electronic credit/dispatch of dividend. The Company or its RTA cannot act on any request
received directly from the Members holding Shares in dematerialized form for any change
of bank particulars or bank mandates. Such changes are to be advised by the Members
concerned to their respective DPs.

b) To quote the ledger Folio or client ID and DP ID numbers in all communications addressed
either to the Company or to RTA.

27. Nomination by Securities holders:

Pursuant to Section 72 of the Companies Act, 2013, any holder of securities of the Company
may, at any time, nominate, in Form No. SH-13, any person as his/her nominee upon whom the
securities shall vest in the event of his/ her death. A nomination may be cancelled or varied by
nominating any other person in place of the present nominee, by the holder of securities who has
made the nomination, by giving a notice of such cancellation or variation, to the Company in Form
No. SH-14. The cancellation or variation shall take effect from the date on which the notice of such
variation or cancellation is received by the Company. The security holder can opt out of nomination
through ISR-3 after cancelling his/her existing nomination, if any, through Form SH-14. The said
form can be downloaded from the Company’s website www.balmerlawrie.com. Members holding
the shares in physical form may submit the same to RTA of the Company, KFin Technologies
Limited at the aforesaid address at the earliest. Members holding shares in dematerialization form
may submit the same to their respective Depository Participant at the earliest.

28. Members who hold Shares in physical form in multiple folios in identical names or joint holding
in the same order of names are requested to write to the Company’s RTA, enclosing their Share
Certificates to enable the Company to consolidate their holdings into a single folio.

29. In accordance with the provisions of Section 136 of the Companies Act, 2013, the Audited
Accounts of its subsidiary is placed on the website of the Company at www.balmerlawrie.com.
Additionally, the Company will provide a copy of separate Audited Financial Statements in respect
of its subsidiary Company to any shareholder of the Company on making requisition in writing to
the Company Secretary at the Registered Office of the Company or at the office of Company’s
RTA.

30. Green initiative: The Members of the Company who have not registered their e-mail address/
mobile number with the Company are requested to register their e-mail address/mobile number
at the earliest for receiving all communications including Annual Report, Notices, etc. from the
Company electronically.

31. Any person who is not a Member as on the cut-off date should treat this Notice for information only.

32. Any person, who becomes a Member of the Company after the dispatch of the Notice and holding
shares as on cut-off day i.e., Wednesday, 20^th September, 2023 (end of day), may obtain the login
ID and password by sending a request at [email protected]. However, if he/she is already

registered with NSDL, CDSL or KFin may kindly follow the instructions for e-Voting stated in
subsequent paras.

33. Shri Navin Kothari, Proprietor of M/s. N. K & Associates, Company Secretaries (Membership No.
FCS 5935 and Certificate of Practice no. 3725) has been appointed as the Scrutinizer by the
Board to scrutinize remote e-voting process before the AGM as well as e-voting at the AGM in a
fair and transparent manner.

34. The Chairman shall at the AGM, after the end of discussion on the resolutions on which voting is
to be held, allow voting by use of e- voting system for all those Members who are present at the
AGM through VC/OAVM but have not cast their votes by availing the remote e-voting facility.

35. The Scrutinizer shall immediately after the conclusion of voting at the AGM, unblock the votes cast
through remote e-Voting in the presence of at least two witnesses not in the employment of the
Company and shall submit within not later than two working days of the conclusion of the AGM, a
consolidated Scrutinizer’s Report of the total votes cast in favour or against to the Chairman or a
person authorized by him in writing, who shall countersign the same and declare the result of the
voting forthwith.

36. The Results will be declared within two working days of the conclusion of AGM. The Results declared
along with the Report of the Scrutinizer shall be placed on the website of the Company www.
balmerlawrie.com under the section ‘Investor Relations’ and on the website of KFin Technolgies
Limited immediately after the declaration of Result by the Chairman or a person authorized by him
in writing. The results shall also be immediately forwarded to the National Stock Exchange of India
Limited and BSE Limited, where the Equity shares of the Company are listed.

37. Since the AGM will be held through VC/OAVM, the route Map is not annexed to this Notice.

THE INSTRUCTIONS FOR MEMBERS FOR REMOTE E-VOTING AND JOINING THE ANNUAL
GENERAL MEETING ARE AS UNDER:-

The remote e-voting period begins on Saturday, 23^rd September, 2023 at 09:00 A.M. and
ends on Tuesday, 26^th September, 2023 at 05:00 P.M. The remote e-voting module shall be
disabled by KFin Technologies Limited for voting thereafter. The Members whose names
appear in the Register of Members/Beneficial Owners as on the cut-off date i.e. Wednesday,
20^th September, 2023 (end of day), may cast their vote electronically. The voting right of
shareholders shall be in proportion to their share in the paid-up equity share capital of the
Company as on the cut-off date, being Wednesday, 20^th September, 2023 (end of day).

Instructions for the Members for attending the AGM through Video Conference:

1. Members may access the platform to attend the AGM through VC/OAVM at https://emeetings.
kfintech.com by using their remote e-Voting credentials or by using their Registered Mobile
number and OTP. The link for the AGM will be available in the Shareholder/Members login
where the "EVENT” and the "Name of the Company” can be selected. Please note that
the Members who have not registered their e-mail address or do not have the User-ID and
Password for e-Voting or have forgotten the User-ID and Password may retrieve the same by
following the remote e-Voting instructions mentioned in this Notice. Further, Members can also
use the OTP based login for logging into the e-meeting system.

In order to logon using the registered mobile number, Members should follow the instructions
below:

a) On the eMeeting webpage, use the Mobile OTP option.

b) Select the Meeting / Name of the Company

c) Input the Registered Mobile Number

d) Click on Send OTP

e) Post validation, join by selecting the Folio.

2. Please note that the Members who do not have the User ID and Password for e-Voting or have
forgotten the User ID and Password may retrieve the same by following the remote e-Voting
instructions mentioned in the notice.

3. Members are encouraged to join the Meeting through Laptops with Google Chrome for better
experience.

4. Further, Members will be required to allow a Camera / webcam, if any, and hence, are requested
to use the Internet with a good speed/ bandwidth to avoid any disturbance during the Meeting.

5. Please note that Participants connecting from Mobile Devices or Tablets or through Laptop
connecting via Mobile Hotspot may experience Audio/Video loss due to fluctuation in their
respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to
mitigate any kind of aforesaid glitches.

6. Members who need assistance before or during the AGM can contact RTA viz., M/s. KFin
Technologies Limited at Toll-free number - 1800 309 4001.

7. AGM Questions prior to AGM: Shareholders who would like to express their views/ask
questions during the Meeting may log into https://emeetings.kfintech.com/ and click on "Post
your Questions” and may post their queries/views/questions in the window provided by
mentioning the name, demat account number/folio number, email id, mobile number. Please
note that Member’s questions will be answered only to the shareholders who continue to hold
the shares as of cut-off date BENPOS i.e. Wednesday, 20^th September, 2023. The post of
the questions shall commence on Friday, 22^nd September, 2023 and close on Sunday, 24^th
September, 2023 and the response to such queries will be appropriately addressed by the
Chairman of the Meeting. Due to technical reasons, the length of a question may possibly
be limited to a certain number of characters. However, the number of questions a Member or
its authorized representative can submit will not be affected thereby. The Management, at its
due discretion, will decide whether and how it will respond to the questions. The Management
may at its discretion summarize the questions and select, in the interest of the other Members,
meaningful questions.

8. Speaker Registration for AGM : Members may log into https://emeetings.kfintech.com/ and
click on "Speaker Registration” by mentioning the demat account number/folio number, PAN,
city, email id, mobile number and submit. The speaker registration shall commerce on Friday,
22^nd September, 2023 and close on Sunday, 24^th September, 2023 .

General instructions for remote e-voting and joining AGM are as follows:

Voting through electronic means:

i. In terms of the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of
the Companies (Management and Administration) Rules, 2014, (as amended) (hereinafter
called ‘the Rules’ for the purpose of this section of the Notice) and Regulation 44 of the
Listing Regulations and in terms of SEBI circular dated 9^th December, 2020 in relation to
e-voting facility provided by Listed Entities, the Members are provided with the remote
e-voting facility to exercise votes on the items of business given in the Notice, through the
e-voting services provided by KFin Technologies Limited or to vote at the AGM.

ii. The Members, whose names appear in the Register of Members/list of Beneficial Owners
as on Wednesday, 20^th September, 2023 (end of day), being the cut-off date fixed for
determining voting rights of Members are entitled to participate in the e-voting process. A
person who is not a Member as on the cut-off date should treat this Notice for information
purpose only.

iii. Members can cast their vote online from Saturday, 23^rd September, 2023 (09:00 A.M.)
till Tuesday, 26^th September, 2023 (05:00 P.M.). Voting beyond the said date shall not be
allowed and the remote e-voting facility shall be blocked.

iv. Alternatively, Members holding securities in physical mode (excluding individual
shareholders) may reach out on toll free number 1800 309 4001 to obtain a User ID and
password.

v. The details of the process and manner for remote e-voting are explained herein below:

Instructions for Members for e-Voting during the AGM session:

1. The e-Voting "Thumb sign” on the left-hand corner of the video screen shall be activated upon
instructions of the Chairman during the AGM proceedings. Shareholders shall click on the
same to take them to the "Instapoll” page.

2. Members to click on the "Instapoll” icon to reach the resolution page and follow the instructions
to vote on the resolutions.

3. Only those shareholders, who are present in the AGM and have not casted their vote on the
Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be
eligible to vote through e-Voting system available during the AGM.

REMOTE E-VOTING THROUGH ELECTRONIC MEANS

The details of the process and manner for remote e-voting are given below:

A. Instructions for remote e-voting by (i) shareholders other than individuals holding shares
of the company in demat mode and (ii) all shareholders holding shares in physical mode

i. Initial password is provided in the body of the e-mail.

ii. Launch internet browser and type the URL: https://evoting.kfintech.com in the address bar.

iii. Enter the login credentials i.e. User ID and password mentioned in your e-mail. Your Folio
No./DP ID Client ID will be your User ID. However, if you are already registered with KFin
for e-voting, you can use your existing User ID and password for casting your votes.

iv. After entering the details appropriately, click on LOGIN.

v. You will reach the password change menu wherein, you are required to mandatorily
change your password. The new password shall comprise of minimum 8 characters with
at least one upper case (A-Z), one lower case (a-z), one numeric value (0-9) and a special
character (@,#,$,etc.). It is strongly recommended not to share your password with any
other person and take utmost care to keep your password confidential.

vi. You need to login again with the new credentials.

vii. On successful login, the system will prompt you to select the EVENT i.e. Balmer Lawrie &
Co. Ltd.

viii. On the voting page, the number of shares (which represents the number of votes) held
by you as on the cut-off date will appear. If you desire to cast all the votes assenting/
dissenting to the resolution, enter all shares and click ‘FOR’ / ‘AGAINST’ as the case may
be or partially in ‘FOR’ and partially in ‘AGAINST’, but the total number in ‘FOR’ and/or
‘AGAINST’ taken together should not exceed your total shareholding as on the cut-off date.
You may also choose the option ‘ABSTAIN’ and the shares held will not be counted under
either head.

ix. Members holding multiple folios/demat accounts shall choose the voting process separately
for each folio/demat account.

x. Cast your votes by selecting an appropriate option and click on ‘SUBMIT’. A confirmation
box will be displayed. Click ‘OK’ to confirm, else ‘CANCEL’ to modify. Once you confirm,
you will not be allowed to modify your vote subsequently. During the voting period, you can
login multiple times till you have confirmed that you have voted on the resolution.

xi. Corporate/institutional Members (i.e. other than individuals, HUF, NRI, etc.) are required to
send scanned image (PDF/JPG format) of certified true copy of relevant board resolution/
authority letter etc. together with attested specimen signature of the duly authorised
signatory(ies) who is/are authorised to vote, to the Scrutinizer through email at kothari.
[email protected] and may also upload the same in the e-voting module in their login. The
scanned image of the above documents should be in the naming format ‘XXXX_EVENT No.’.

xii. In case of any queries/grievances, you may refer the Frequently Asked Questions (FAQs)
for Members and e-voting User Manual available at the ‘download’ section of https://
evoting.kfintech.com or contact Shri G. Ramdas of KFin Technologies Limited or call KFin
Technologies Limited on 1800 309 4001 (toll free) or e-mail at [email protected].

1. The voting rights of the Members shall be in proportion to their shares of the paid up equity
share capital of the Company as on the cut-off date.

2. The Company has appointed Shri Navin Kothari, Proprietor of M/s. N. K & Associates, Company
Secretaries as Scrutinizer to scrutinize the remote e-voting and e-voting during the AGM in a
fair and transparent manner.

3. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, first count
the electronic votes cast during the AGM and thereafter unblock and count the votes cast
through remote e-voting and make, not later than 2 working days of conclusion of the AGM,
a consolidated Scrutinizer’s Report of the total votes cast in favour or against, if any, to the
Chairman or any other person authorised by him.

4. The Results on resolutions shall be declared within 2 working days of the conclusion of the
AGM and the resolutions will be deemed to be passed on the AGM date subject to receipt of
the requisite majority votes in favour of the Resolutions.

5. The result declared along with the Scrutinizer’s Report shall be placed on the Company’s
website www.balmerlawrie.com and on the website of KFin Technologies Limited https://www.
evoting.kfintech.com. The Company shall simultaneously forward the results to BSE Limited
and National Stock Exchange of India Limited, where the Equity shares of the Company are
listed.

Item No. 5: Appointment of Shri Saurav Dutta (DIN: 10042140) as Director (Finance) and
fixation of terms of his appointment

Further to the direction of the Ministry of Petroleum and Natural Gas, Government of India
(‘Administrative Ministry’) vide letter bearing reference no. CA-31024/1/2021-PNG (36607) dated
31^st January, 2023 (‘Nomination Letter’) and in line with the recommendation of the Nomination
and Remuneration Committee, the Board of Directors of the Company had appointed Shri Saurav
Dutta (DIN: 10042140) as an Executive, Additional Director, with the designation of Director
(Finance) of the Company with effect from 2^nd February, 2023 upto the date of this Annual General
Meeting as per the provisions of the Companies Act, 2013 and allied Rules, the Securities and
Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations,
2015, other applicable statutes and the Articles of Association of the Company on such terms and
conditions as mentioned in the Nomination Letter.

Further, the Board of Directors of the Company had also appointed Shri Saurav Dutta (DIN:
10042140) as the Chief Financial Officer of the Company with effect from 10^th February, 2023
in compliance with Section 203 of the Companies Act, 2013 read with allied Rules and pursuant
to the applicable Regulations of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and other applicable statutes.

The Company has received from Shri Saurav Dutta (DIN: 10042140), Form No. DIR-2, consent to
act as a Director and also Form No. DIR-8 confirming that he is eligible to be appointed as Director
as prescribed under the Companies (Appointment and Qualification of Directors) Rules, 2014.
The Company has received a declaration from the Director stating that he is not debarred from
holding the office of Director pursuant to any order of SEBI or any other such authority. Further, the
Company and its Nomination and Remuneration Committee has verified that Shri Saurav Dutta
(DIN: 10042140) is not debarred from holding office of Director by any order of SEBI or any other
authority.

The Company has received a valid notice of candidature from a Member as per the provision of
Section 160 of the Companies Act, 2013, proposing the appointment of Shri Saurav Dutta (DIN:
10042140) as a Director of the Company whose period of office as Director shall be subject to
determination by retirement of directors by rotation.

Except Shri Saurav Dutta (DIN: 10042140), being the proposed appointee, none of the Directors
or Key Managerial Personnel of the Company and their relatives are concerned or interested,
financially or otherwise, in this Ordinary Resolution.

The particulars of Shri Saurav Dutta (DIN: 10042140), Disclosures as required under Regulation 36
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Secreta

---

Mar 31, 2018

The Standalone financial statements have been prepared using the accounting policies and measurement basis summarized below.

1.1 Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:

- Certain financial assets and liabilities, measured at fair value (refer accounting policy regarding financial instruments),

- Defined benefit plans, plan assets measured at fair value

1.2 Property, plant and equipment

Items of Property, plant and equipment are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition. Property, plant and equipment manufactured /constructed in house are valued at actual cost of raw materials, conversion cost and other related costs.

Cost of leasehold land having lease tenure over thirty (30) years is amortised over the period of lease. Leases having tenure of thirty (30) years or less are treated as operating lease and disclosed under prepaid expense.

Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in- Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

Machine Spares whose use is irregular is classified as Capital Spares. Such capital spares are capitalised as per Plant, Property & equipment.

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss within ‘other income’ or ‘other expenses’ respectively.

Depreciation on Plant & Machinery other than continuous process plant is provided on pro-rata basis following straight line method considering estimated useful life at 25 years, based on technical review by a Chartered Engineer. Depreciation on continuous process plant is as per Schedule II of the Companies Act, 2013.

Depreciation on tangible assets other than Plant and Machinery, is provided on pro-rata basis following straight line method over the estimated useful lives of the asset or over the lives of the assets prescribed under Schedule II of the Companies Act, 2013, whichever is lower. Based on internal review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in Schedule II of the Companies Act, 2013:

The residual values of all assets are taken as NIL.

1.3 Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable, borrowing costs. Subsequent expenditure is capitalised to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

When part of an investment property is replaced, the carrying amount of the replaced part is derecognised. Additionally, when a property given on rent is vacated and the management’s intention is to use the vacated portion for the purpose of its own business needs, Investment Properties are reclassified as Buildings.

Investment properties are depreciated using the straight-line method over their estimated useful lives which is consistent with the useful lives followed for depreciating Property, Plant and Equipment.

1.4 Financial Instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transaction costs, except for those carried at fair value through profit or loss (FVTPL) which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities is described below.

Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition:

- Amortised cost

- Financial Assets at FVTPL

All financial assets except for those at FVTPL are subject to review for impairment.

Amortised cost

A financial asset shall be measured at amortised cost using effective interest rates if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.

A loss allowance for expected credit losses is recognised on financial assets carried at amortised cost. Expected loss on individually significant receivables are considered for impairment when they are past due and based on Company’s historical counterparty default rates and forecast of macro-economic factors. Receivables that are not considered to be individually significant are segmented by reference to the industry and region of the counterparty and other shared credit risk characteristics to evaluate the expected credit loss. The expected credit loss estimate is then based on recent historical counterparty default rates for each identified segment.The Company has a diversified portfolio of trade receivables from its different segments. Every business segment of the Company has calculated provision using a single loss rate for its receivables using its own historical trends and the nature of its receivables. There are no universal expected loss percentages for the Company as a whole. The Company generally considers its receivables as impaired when they are 3 years past due. Considering the historical trends and market information, the Company estimates that the provision computed on its trade receivables is not materially different from the amount computed using expected credit loss method prescribed under Ind AS 109. Since the amount of provision is not material for the Company as a whole, no disclosures have been given in respect of expected credit losses.

Derivative financial instruments are carried at FVTPL.

1.5 Inventories

a) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

b) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

c) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion where it can be reliably estimated.

d) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

e) Loose Tools are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

1.6 Government grants

a) Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

b) Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

c) Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

1.7 Foreign currency translation

a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The applicable functional and presentation currency is INR.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss.

1.8 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of Directors assesses the financial performance and position of the Company, and makes strategic decisions and have identified business segment as its primary segment.

1.9 Provisions, Contingent liabilities and Capital commitments

a) Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provision amount are discounted to their present value where the impact of time value of money is expected to be material.

b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs.100,000 in each case.

d) Contingent liabilities pertaining to various government authorities are considered only on conversion of show cause notices issued by them into demand.

1.10 Intangible assets

a) Expenditure incurred for acquiring intangible assets like software costing Rs.500,000 and above and license to use software per item of Rs.25,000 and above, from which economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

b) Brand value arising on acquisition are recognised as an asset and are amortised on a straight line basis over 10 years.

c) Goodwill on acquisition is not amortised but tested for impairment annually.

d) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

1.11 Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

1.12 Treatment of Grant / Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

1.13 Impairment of assets

An assessment is made at each Balance Sheetdate to determine whether there is an indication of impairment of the carrying amount of thefixed assets. If any indication exists, an asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amountof the asset exceeds the recoverable amount.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit using an appropriate discount factor.

1.14 Income taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided those rates are enacted or substantively enacted by the end of the reporting period.

Deferred tax asset (‘DTA’) is recognized for all deductible temporary differences, carry forward of unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary difference, and the carry forward of unused tax credits and unused tax losses can be utilized or to the extent of taxable temporary differences except:

- Where the DTA relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

- in respect of deductible temporary differences arising from investments in subsidiaries, branches and associates, and interests in joint arrangements, to the extent that, and only to the extent that, it is probable that the temporary difference will reverse in the foreseeable future; and taxable profit will be available against which the temporary difference can be utilized.

This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit.

Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where theCompany is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

1.15 Leases

Finance leases

Management applies judgment in considering the substance of a lease agreement and whether it transfers substantially all the risks and rewards incidental to ownership of the leased asset. Key factors considered include the length of the lease term in relation to the economic life of the asset, the present value of the minimum lease payments in relation to the asset’s fair value, and whether the Company obtains ownership of the asset at the end of the lease term. Where the Company is a lessee in this type of arrangement, the related asset is recognized at the inception of the lease at the fair value of the leased asset or, if lower, the present value of the lease payments plus incidental payments, if any. A corresponding amount is recognized as a finance lease liability.

The assets held under finance leases are depreciated over their estimated useful lives or lease term, whichever is lower. The corresponding finance lease liability is reduced by lease payments net of finance charges. The interest element of lease payments represents a constant proportion of the outstanding capital balance and is charged to profit or loss, as finance costs over the period of the lease.

Operating leases

All other leases are treated as operating leases. Lease rentals for operating leases is recognised in Profit and loss on a straight-line basis over the lease term unless the rentals are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases.

1.16 Revenue recognition

Revenue is measured as the fair value of consideration received or receivable, excluding Goods and Services tax.

Sale of goods

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods.

Services rendered:

a) When service rendered in full or part is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services.

b) In case of project activities: As per the percentage of completion method after progress of work to a reasonable extent.

c) In cases where the Company collects consideration on account of another party, it recognises revenue as the net amount retained on its own account.

Other income:

a) Interest on a time proportion basis using the effective Interest rate method

b) Dividend from investments in shares on establishment of the Company’s right to receive.

c) Royalties are recognised on accrual basis in accordance with the substance of the relevant agreement

1.17 Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

1.18 Cash Flow Statement

Cash Flow Statement, as per Ind AS - 7, is prepared using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

1.19 Employee Benefits

(i) Short term obligations

Liabilities for wages and salaries including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligation in balance sheet

(ii) Post-employment obligations

Defined Contribution plans

Provident Fund : the company transfers provident fund contributions to the trust registered for maintenance of the fund and has no further obligations on this account. These are recognised as and when they are due.

Superannuation Fund : the company contributes a sum equivalent to 9% of eligible employees’ salary to the fund administered by the trustees and managed by Life InsuranceCorporation of India (LIC) and has no further obligations on this account. These are recognised as and when they are due.

Defined Benefit plans

Gratuity and Post Retirement Benefit plans - The defined benefit obligation is calculated annually by actuary using the projected unit credit method. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity. Changes in present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

(iii) Other long term employee benefit obligations

The liabilities for leave encashment and long service awards are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are measured annually by actuary using the projected unit credit method. Re-measurement as a result of experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur in profit or loss.

1.20 Prior period Items

Material prior period items which arise in th e current period as a result of error or omission in the preparation of prior period’s financial statement are corrected retrospectively in the first set of financial statements approved for issue after their discovery by:

a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or

b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

c) Any items exceeding rupees twenty five lakhs (Rs. 25 Lakhs) shall be considered as material prior period item.

d) Retrospective restatement shall be done except to the extent that it is impracticable to determine either the period specific effects or the cumulative effect of the error. When it is impracticable to determine the period specific effects of an error on comparative information for one or more prior periods presented, the company shall restate the opening balances of assets, liabilities and equity for the earliest prior for which retrospective restatement is practicable (which may be the current period)

1.21 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, share splits or consolidation that have changed the number of equity shares outstanding without a change in corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of dilutive potential equity shares.

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Mar 31, 2017

GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

Balmer Lawrie & Co. Ltd. (the “Company”) is a Government of India Enterprise engaged in diversified business with presence in both manufacturing and service businesses. The Company is engaged in the business of Industrial Packaging, Greases & Lubricants, Leather Chemicals, Logistics Services and Infrastructure, Refinery & Oil Field and Travel & Vacation Services in India. The company is a Government company domiciled in India and is incorporated under the provisions of Companies Act applicable in India, its shares are listed on recognized stock exchanges of India.

Basis of Preparation

The standalone financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015, as amended, issued by Ministry of Corporate Affairs and other relevant provisions of the Companies Act, 2013. The Company has uniformly applied the accounting policies during the period presented. These are the Company’s first financial statements prepared in accordance with and comply in all material aspects with Indian Accounting Standards (Ind AS). Unless otherwise stated, all amounts are stated in lakhs of Rupees.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

The preparation of financial statements requires the use of accounting estimates which, by definition, may or may not equal the actual results. Management also needs to exercise judgment in applying the Company’s accounting policies.

The Standalone financial statements for the year ended 31st March are authorized and approved for issue by the Board of Directors.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Standalone financial statements have been prepared using the accounting policies and measurement basis summarized below.

1.1 Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:

- Certain financial assets and liabilities, measured at fair value (refer accounting policy regarding financial instruments),

- Defined benefit plans, plan assets measured at fair value

1.2 Property, plant and equipment

Items of Property, plant and equipment are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition. Property, plant and equipment manufactured /constructed in house are valued at actual cost of raw materials, conversion cost and other related costs.

Cost of leasehold land having lease tenure over thirty (30) years is amortized over the period of lease. Leases having tenure of thirty (30) years or less are treated as operating lease and disclosed under prepaid expense.

Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

Machine Spares whose use is irregular is classified as Capital Spares. Such capital spares are capitalized as per Property, Plant & equipment.

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss within ‘other income’ or ‘other expenses’ respectively.

Depreciation on tangible assets is provided on pro-rata basis on the straight line method over the estimated useful lives of the asset or over the lives of the assets prescribed under Schedule II of the Companies Act, 2013, whichever is lower. Based on review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in Schedule II of the Companies Act 2013 :

In case of Plant & Machinery other than continuous process plant, based on technical review by a Chartered Engineer, useful life is estimated at 25 years.

The residual values of all assets are taken as NIL.

1.3 Investment property

Property that is held for long-term rental yields or for capital appreciation, or both, and that is not occupied by the Company, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs and where applicable, borrowing costs. Subsequent expenditure is capitalized to the asset’s carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.

When part of an investment property is replaced, the carrying amount of the replaced part is derecognized. Additionally, when a property given on rent is vacated and the management’s intention is to use the vacated portion for the purpose of its own business needs, Investment Properties are reclassified as Buildings.

Investment properties are depreciated using the straight-line method over their estimated useful lives which is consistent with the useful lives followed for depreciating Property, Plant and Equipment.

1.4 Financial Instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted by transaction costs, except for those carried at fair value through profit or loss (FVTPL) which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities is described below.

Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires.

Classification and subsequent measurement of financial assets

For the purpose of subsequent measurement, financial assets are classified into the following categories upon initial recognition :

- Amortized cost

- financial assets at FVTPL

All financial assets except for those at FVTPL are subject to review for impairment.

Amortized cost

A financial asset shall be measured at amortized cost using effective interest rates if both of the following conditions are met:

a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.

A loss allowance for expected credit losses is recognized on financial assets carried at amortized cost. Expected loss on individually significant receivables are considered for impairment when they are past due and based on Company’s historical counterparty default rates and forecast of macro-economic factors. Receivables that are not considered to be individually significant are segmented by reference to the industry and region of the counterparty and other shared credit risk characteristics to evaluate the expected credit loss. The expected credit loss estimate is then based on recent historical counterparty default rates for each identified segment. The Company has a diversified portfolio of trade receivables from its different segments. Every business segment of the Company has calculated provision using a single loss rate for its receivables using its own historical trends and the nature of its receivables. There are no universal expected loss percentages for the Company as a whole. The Company generally considers its receivables as impaired when they are 3 years past due. Considering the historical trends and market information, the Company estimates that the provision computed on its trade receivables is not materially different from the amount computed using expected credit loss method prescribed under Ind AS 109. Since the amount of provision is not material for the Company as a whole, no disclosures have been given in respect of expected credit losses.

Derivative financial instruments are carried at FVTPL.

1.5 Inventories

a) Inventories are valued at lower of cost or net realizable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

b) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

c) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost up to the relative stage of completion where it can be reliably estimated.

d) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

e) Loose Tools are written-off over the economic life except items costing upto '' 10000 which are charged off in the year of issue.

1.6 Government grants

a) Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Company will comply with all attached conditions.

b) Government grants relating to income are deferred and recognized in the profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

c) Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets and presented within other income.

1.7 Foreign currency translation

a) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The applicable functional and presentation currency is INR.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss.

1.8 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The Board of Directors assesses the financial performance and position of the Company and makes strategic decisions and have identified business segment as its primary segment.

1.9 Provisions, Contingent liabilities and Capital commitments

a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provision amount are discounted to their present value where the impact of time value of money is expected to be material.

b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed '' 100,000 in each case.

d) Contingent liabilities pertaining to various government authorities are considered only on conversion of show cause notices issued by them into demand.

1.10 Intangible assets

a) Expenditure incurred for acquiring intangible assets like software costing '' 500,000 and above and license to use software per item of '' 25,000 and above, from which economic benefits will flow over a period of time, is amortized over the estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

b) Brand value arising on acquisition are recognized as asset and are amortized on a straight line basis over 10 years.

c) Goodwill on acquisition is not amortized but tested for impairment annually.

d) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

1.11 Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

1.12 Treatment of Grant / Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organization of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

1.13 Impairment of assets

An assessment is made at each Balance Sheet date to determine whether there is an indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset’s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

1.14 Income taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using

the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided those rates are enacted or substantively enacted by the end of the reporting period.

Deferred tax asset (‘DTA’) is recognized for all deductible temporary differences, carry forward of unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary difference, and the carry forward of unused tax credits and unused tax losses can be utilized or to the extent of taxable temporary differences except:

— Where the DTA relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

— in respect of deductible temporary differences arising from investments in subsidiaries, branches and associates, and interests in joint arrangements, to the extent that, and only to the extent that, it is probable that the temporary difference will reverse in the foreseeable future; and taxable profit will be available against which the temporary difference can be utilized.

This is assessed based on the Company’s forecast of future operating results, adjusted for significant non-taxable income and expenses

and specific limits on the use of any unused tax loss or credit.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

Deferred tax liabilities are not recognized for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where the Company is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

1.15 Leases

Finance leases

Management applies judgment in considering the substance of a lease agreement and whether it transfers substantially all the risks and rewards incidental to ownership of the leased asset. Key factors considered include the length of the lease term in relation to the economic life of the asset, the present value of the minimum lease payments in relation to the asset’s fair value, and whether the Company obtains ownership of the asset at the end of the lease term. Where the Company is a lessee in this type of arrangement, the related asset is recognized at the inception of the lease at the fair value of the leased asset or, if lower, the present value of the lease payments plus incidental payments, if any. A corresponding amount is recognized as a finance lease liability.

The assets held under finance leases are depreciated over their estimated useful lives or lease term, whichever is lower. The corresponding finance lease liability is reduced by lease payments net of finance charges. The interest element of lease payments represents a constant proportion of the outstanding capital balance and is charged to profit or loss, as finance costs over the period of the lease.

Operating leases

All other leases are treated as operating leases. Lease rentals for operating leases is recognized in profit and loss on a straight-line basis over the lease term unless the rentals are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases.

1.16 Revenue recognition

Revenue is measured as the fair value of consideration received or receivable, including excise though excluding sales taxes, rebates and various discounts.

Sale of goods

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods.

Services rendered:

a) When service rendered in full or part is recognized by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services.

b) In case of project activities : As per the percentage of completion method after progress of work to a reasonable extent.

c) In cases where the Company collects consideration on account of another party, it recognizes revenue as the net amount retained on its own account.

Other income:

a) Interest on a time proportion basis using the effective interest rate method.

b) Dividend from investments in shares on establishment of the Company’s right to receive.

c) Royalties are recognized on accrual basis in accordance with the substance of the relevant agreement.

1.17 Borrowing Costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Other Borrowing Costs are recognized as expense in the period in which they are incurred.

1.18 Cash Flow Statement

Cash Flow Statement, as per Ind AS-7, is prepared using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

1.19 Employee Benefits

(i) Short term obligations

Liabilities for wages and salaries including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligation in balance sheet.

(ii) Post-employment obligations

Defined Contribution plans

Provident Fund : the company transfers provident fund contributions to the trust registered for maintenance of the fund and has no further obligations on this account. These are recognized as and when they are due.

Superannuation Fund : the company contributes a sum equivalent to 8% of eligible employees’ salary to the fund administered by the trustees and managed by Life Insurance Corporation of India (LIC) and has no further obligations on this account. These are recognized as and when they are due.

Defined Benefit plans

Gratuity and Post Retirement Benefit plans

- The defined benefit obligation is calculated annually by actuary using the projected unit credit method. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity. Changes in present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

(iii) Other long term employee benefit obligations

The liabilities for leave encashment and

long service awards are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are measured annually by actuary using the projected unit credit method. Re-measurement as a result of experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur in profit or loss.

1.20 Prior period Items

Material prior period items which arise in the current period as a result of error or omission in the preparation of prior period’s financial statement are corrected retrospectively in the first set of financial statements approved for issue after their discovery by :

a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or

b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

c) Any items exceeding rupees twenty five lacs ('' 25 Lakhs) shall be considered as material prior period item.

d) Retrospective restatement shall be done except to the extent that it is impracticable to determine either the period specific effects or the cumulative effect of the error. When it is impracticable to determine the period specific effects of an error on comparative information for one or more prior periods presented, the company shall restate the opening balances of assets, liabilities and equity for the earliest period for which retrospective restatement is practicable (which may be the current period).

Basic earnings per share are calculated by dividing the net profit or loss (excluding other comprehensive income) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue, share splits or consolidation that have changed the number of equity shares outstanding without a change in corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit or loss (excluding other comprehensive income) for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of dilutive potential equity shares.

Investment property is recognized and valued using cost model. Depreciation is calculated using straight line method on the basis of useful life of assets

(i) Contractual obligations

There is no contractual commitment for the acquisition of Investment Property.

(ii) Capitalized borrowing cost

No borrowing costs were capitalized during the year ended 31 March 2017 or previous ended 31 March

2016.

(iii) Restrictions

There are no restrictions on remittance of income receipts or receipt of proceeds from disposals.

The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources including :

a) current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.

b) discounted cash flow projections based on reliable estimates of future cash flows.

c) restrictions on remittance of income receipts or receipt of proceeds from disposals.

d) capitalized income projections based upon a property’s estimated net market income, and a capitalization rate derived from an analysis of market evidence.

e) The fair values of investment properties have been determined by an external valuer. The main inputs used are rental growth rates, expected vacancy rates, terminal yield and discount rates based on industry data.

b) Rights/preferences/restrictions attached to equity shares

The Company has one class of equity shares having a par value of '' 10 per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of other reserves

Share Premium Reserve

Share Premium Reserve represents premium received on issue of shares. The reserve will be utilized in accordance with the provisions of the Companies Act, 2013.

Other Comprehensive Income Reserve

(i) The Company has elected to recognize changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Fair Value through Other Comprehensive Income (FVOCI) equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognized.

(ii) The Company has recognized remeasurement benefits on defined benefits plans through Other Comprehensive Income.

General Reserve

The company has proposed to transfer a sum of Rs, 3000 Lacs to General Reserve out of the profits.

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Mar 31, 2016

1. Basis of Preparation

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the
historical cost convention on accrual basis complying in all material aspects with the accounting standards notified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working
condition.

b) Fixed Assets manufactured / constructed in-house are valued at actual cost of raw materials, conversion cost and other related
costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital
Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of
transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and
are shown separately in the financial statements. Loss determined, if any, is recognized in the Statement of profit and loss.

f) Depreciation on tangible assets is provided on pro-rata basis on the straight line method over the estimated useful lives of
the asset or over the lives of the assets prescribed under Schedule II of the Companies Act 2013 whichever is lower. Based on
review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in
Schedule II of the Companies Act 2013:

i Mobile Phones and Portable Personal Computers over two years

ii Items given to employees under furniture equipment scheme over five years

iii Electrical items like air conditioners, fans, refrigerators, etc over 6.67 years

iv Sofa set, Woollen Carpets, Photocopier, Fax machines, Motor Cars & Machine Spares whose use is irregular over five years

In case of Plant & Machinery, other than Continuous Process, based on technical review by a Chartered Engineer, useful life is
estimated at 25 years.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution
in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the
different types of inventories is as under -

a) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of
completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs. 10000 which are charged
off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following :

a) In case of sale of goods:

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty
exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax /
VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding
the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company''s right to receive.

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation fund are charged to Statement of Profit and Loss.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Statement of Profit & Loss on
the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s
financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual
income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary
activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the
respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are
translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at
cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis.

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are
translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current

Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement
of Profit & Loss except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are
amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the
Statement of Profit & Loss.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or
cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On
expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general
reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against
under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial
period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are
recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying
amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is
recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the
net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present
value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using
the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company
has identified business segment as its primary reporting segment.

15. Intangible Assets

a) Expenditure incurred for acquiring intangible assets like software of Rs. 500000 and above and license to use software per
item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the
estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the
economic benefit.

b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5
years and 10 years respectively.

c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of
resources will be required to settle the obligation in respect of which a reliable estimate can be made.

b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is
confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 100000 in each case.

d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into
demand.

---

Mar 31, 2015

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation on tangible assets is provided on pro-rata basis on the straight line method over the estimated useful lives of the asset or over the lives of the assets prescribed under Schedule II of the Companies Act 2013 whichever is lower. Based on review, the lower estimated useful lives of the following assets are found justifiable compared to the lives mentioned in Schedule II of the Companies Act 2013:

i. Mobile Phones and Portable Personal Computers over two years

ii. Items given to employees under furniture equipment scheme over five years

iii. Electrical items like air conditioners, fans, refrigerators, etc over 6.67 years

iv. Sofa set, Woollen Carpets, Photocopier, Fax machines, Motor Cars & Machine Spares whose use is irregular over five years

In case of Plant & Machinery other than Continuous Process, based on technical review by a Chartered Engineer, life is assumed to be of 25 years.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods, stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company's right to receive.

6. Employee Benefits

a) Company's contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period's financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/ expenditure arising out of over or under estimation in prior period are not treated as prior period income/expenditure.

b) Income/Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost .

d) In case of foreign branch, translation of the financial statement is made on the following basis

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use . In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the estimated useful life of the asset or five years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5 years and 10 years respectively.

(c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

---

Mar 31, 2014

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre- production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more

appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment, Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 20% per annum respectively; (ii) Mobile Phones at the rate of 50% per annum; (iii) Motor Cars at the rate of 20% per annum; (iv) Portable Personal Computers at the rate of 50% per annum; (v) items given to employees under the furniture equipment scheme, at the rate of 20% per annum; and (vi) assets whose actual cost does not exceed Rs. 5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs 10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods:

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares on establishment of the Company''s right to receive.

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company has identified

business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs 500000 and above and license to use software per item of Rs 25000 and above, from which economic benefits will flow over a period of time, is capitalized and amortized over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) Goodwill and Brand Value arising on acquisition are recognized as an asset and are amortised on a straight line basis over 5 years and 10 years respectively.

(c) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

B Rights, Preferences and Restrictions attached to Shares

The Company has one class of equity shares having a par value ofRs10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

D There are no other individual shareholders holding 5% or more in the issued share capital of the company.

E The Board of Directors had approved the issue of additional 1,22,14,560 bonus equity shares of Rs.10 each at its meeting held on March 26, 2013, which have been allotted on May 25, 2013, after obtaining the assent of the members.

---

Mar 31, 2013

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortised over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined , if any, is recognised in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 20% per annum respectively;

(ii) Mobile Phones at the rate of 50% per annum;

(iii) Motor Cars at the rate of 20% per annum; (iv) Portable Personal Computers at the rate of 50% per annum; (v) items given to employees under the furniture equipment scheme, at the rate of 25% per annum for Computers and 15% per annum for other Items; and (vi) assets whose actual cost does not exceed Rs. 5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under:

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest - on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from - on establishment of the investments Company''s right to receive. in shares

6. Employee Benefits

a) Company''s contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) All prior period items which arise in the current period as a result of error or omission in the preparation of prior period''s financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual income/ expenditure arising out of over or under estimation in prior period are not treated as prior period income/ expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) All extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost except that the exchange differences relating to liabilities for acquisition of fixed assets are adjusted in the cost of the asset.

d) In case of foreign branch, translation of the financial statement is made on the following basis:

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchang rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/ subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organization of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets, which take substantial period of time to get ready for its intended use, are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use . In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment with secondary information reported geographically.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is amortised over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

---

Mar 31, 2012

1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notifi ed under Section 211(3C) (Companies (Accounting Standard) Rules, 2006, as amended) and other relevant provisions of the Companies Act, 1956.

2. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realizable value and are shown separately in the financial statements. Loss determined, if any, is recognized in the profit and loss statement.

f) Depreciation is provided following the straight line method. Rates of Depreciation are in accordance with the provisions of the Companies Act, 1956, as prevailing from time to time, except for items covered under paragraphs (g) and (h) below.

g) The company reviews the depreciation policies followed for various items of assets, their useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any signifi cant variation is noticed in the pattern of economic benefits embodied in the assets. Based on technical review, (i) certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter. Accounting Machine and Office Equipment are being depreciated @ of 15%, 20% and 20% per annum respectively; (ii) Mobile Phones @ of 50% per annum; (iii) Motor Cars @ of 20% per annum (iv) Portable Personal Computers @ of 50% per annum; (v) items given to employees under the furniture equipment scheme, @ of 25% per annum for Computers and

15% per annum for Other Items; and (vi) assets whose actual cost does not exceed Rs.5000, at the rate of 100% in the year of addition of the asset, irrespective of the date of addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of fi ve years (by charging depreciation @20% p. a on straight line basis) or the residual life of the Principal asset, whichever is lower.

3. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

4. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

5. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all signifi cant risks and rewards of ownership are transferred to the buyer and no signifi cant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no signifi cant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest - on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares- on establishment of the Company's right to receive.

6. Employee Benefits

a) Company's contributions to Provident Fund and Superannuation fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period's financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income / expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specifi ed below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis -

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rale on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognized in the Profit & Loss Account

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fi xed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash fl ows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India. The Company has identifi ed business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will fl ow over a period of time, is capitalized and amortized over the estimated useful life of the asset or fi ve years, whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognized when there is a present obligation as a result of a past event and it is probable that an outfl ow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confi rmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs.1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

---

Mar 31, 2011

1. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortised over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realisable value and are shown separately in the financial statements. Loss determined, if any, is recognised in the profit and loss statement.

f) The company reviews the depreciation policies followed for various items of assets, its useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on the above technical review, certain items of Electrical Installations and Equipment, Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 20% respectively on straight line basis.

g) Depreciation is provided in accordance with the provisions of the Companies Act, 1956, prevailing from time to time at the straight line method except (i) for mobile phones at the rate of 50% per annum, (ii) for items given to employees under the furniture equipment scheme which has been provided at the rate of 25% per annum for computers and 15% per annum for other items and (iii) for assets whose actual cost does not exceed Rs. 5000, which has been depreciated fully in the year of addition of the asset, irrespective of the date of such addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset , whichever is lower.

2. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

3. Valuation of Inventories

(i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written-off over the economic life except items costing upto Rs. 10000 which are charged off in the year of issue.

4. Recognition of Revenue

Revenue is recognised in compliance with the following:

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest

on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from investments in shares

on establishment of the Company's right to receive.

5. Employee Benefits

a) Company's contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment, Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

6. Payments made under Voluntary Retirement / Separation Schemes

a) Compensation comprising of Ex - gratia , Notice-Pay and Rehabilitation Grant payable to employees separating under Voluntary Retirement / Separation Scheme till 31 March, 2005 is treated as Deferred Revenue Expenditure and iswritten off as per following instalments :-

(i) Paid upto December, 1999- Five equal yearly instalments;

(ii) Paid during January, 2000 to March, 2005 - Sixty equal monthly instalments.

b) Compensation under Voluntary Retirement/ Separation Scheme with effect from 1st April, 2005 - Charged off in the same financial year.

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior period's financial statement are separately disclosed in the current statement of profit & loss. However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Monetary items denominated in a foreign currency (such as cash, balance in bank accounts, receivables, payables, etc ) are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Non-monetary assets denominated in foreign currency such as Long Term Investment, Inventories and Fixed Assets are carried at cost.

d) In case of foreign branch, translation of the financial statement is made on the following basis -

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognised in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition, construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets. Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard – 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard – 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment.

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25000 and above, from which economic benefits will flow over a period of time, is capitalised and amortised over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.

---

Mar 31, 2010

1. Fixed Assets and Depreciation

a) Fixed Assets are valued at cost of acquisition inclusive of any other cost attributable to bringing the same to their working condition.

b) Fixed Assets manufactured/constructed in-house are valued at actual cost of raw materials, conversion cost and other related costs.

c) Cost of leasehold land is amortized over the period of lease.

d) Expenditure incurred during construction of capital projects including related pre-production expenses is treated as Capital Work-in-Progress and in case of transfer of the project to another body, the accounting is done on the basis of terms of transfer.

e) Fixed assets retired from active use and held for disposal are stated at the lower of book value and net realisable value and are shown separately in the financial statements. Loss determined, if any, is recognised in the profit and loss statement.

f) The company reviews the depreciation policies followed for various items of assets, its useful life and circumstances prevailing in the business so as to make a more appropriate preparation or presentation of the financial statements. Necessary adjustment is made in the depreciation charge for the assets, if any significant variation is noticed in the pattern of economic benefits embodied in the assets. Based on the above technical review, certain items of Electrical Installations and Equipment , Furniture and Fittings and Typewriter, Accounting Machine and Office Equipment are being depreciated at the rate of 15%, 20% and 25% respectively on straight line basis.

g) Depreciation is provided in accordance with the provisions of the Companies Act, 1956, prevailing from time to time at the straight line method except (i) for mobile phones at the rate of 50% per annum ,(ii) for items given to employees under the furniture equipment scheme which has been provided at the rate of 25% per annum for computers and 15% per annum for other items and (iii) for assets whose actual cost does not exceed Rs. 5000, which has been depreciated fully in the year of addition of the asset, irrespective of the date of such addition.

h) Machinery Spares, which can be used only in connection with an item of fixed asset and whose use is expected to be irregular, are treated as fixed assets and depreciated over a period of five years (by charging depreciation @ 20% p.a. on straight line basis) or the residual life of the Principal asset, whichever is lower.

2. Valuation of Investments

The long term investments made by the company appear at cost inclusive of acquisition charges. Provision is made for diminution in value considering the nature and extent of permanent diminution. Current investments appear at lower of cost or fair value.

3. Valuation of Inventories

i) Inventories are valued at lower of cost or net realisable value. For this purpose, the basis of ascertainment of cost of the different types of inventories is as under -

a) Raw materials & trading goods (other than tea), stores & spare parts and materials for turnkey projects on the basis of weighted average cost.

b) Work-in-progress on the basis of weighted average cost of raw materials and conversion cost upto the relative stage of completion.

c) Finished goods on the basis of weighted average cost of raw materials, conversion cost and other related costs.

d) Tea (unblended, blended and packed) - on the basis of specific cost.

(ii) Tools, dies, jigs and fixtures are written - off over the economic life except items costing upto Rs.10000 which are charged off in the year of issue.

4. Recognition of Revenue

Revenue is recognised in compliance with the following :

a) In case of sale of goods :

When the property and all significant risks and rewards of ownership are transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods. Sales are stated exclusive of Sales Tax / VAT.

b) In case of services rendered:

When performance in full or part as having achieved is recognised by the buyer and no significant uncertainty exists regarding the amount of consideration that is derived from rendering the services. Income from Services are exclusive of Service Tax.

c) In case of project activities:

As per the percentage of completion method after progress of work to a reasonable extent.

d) In case of other income:

i) Interest on a time proportion basis taking into account the outstanding principal and the relative rate of interest.

ii) Dividend from on establishment of the investments in shares Companys right to receive.

5. Employee Benefits

a) Companys contributions to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Employee benefits in respect of Gratuity, Leave Encashment , Long Service Awards and Leave Travel Assistance are charged to Profit & Loss Account on the basis of actuarial valuation made at the year end.

c) Post retirement medical benefit is also recognised on the basis of actuarial valuation made at the year end.

6. Payments made under Voluntary Retirement / Separation Schemes

a) Compensation comprising of Ex - gratia , Notice-Pay and Rehabilitation Grant payable to employees separating under Voluntary Retirement / Separation Scheme till 31 March , 2005 is treated as Deferred Revenue Expenditure and is written off as per following instalments :-

(i) Paid upto December, 1999 - Five equal yearly instalments ;

(ii) Paid during January, 2000 - Sixty equal monthly to March, 2005 instalments.

b) Compensation under Voluntary Retirement/ Separation Scheme with effect from

1st April, 2005 - Charged off in the same financial year .

7. Treatment of Prior Period and Extraordinary Items

a) Prior period items which arise in the current period as a result of error or omission in the preparation of prior periods financial statement are separately disclosed in the current statement of profit & loss . However, differences in actual income/expenditure arising out of over or under estimation in prior period are not treated as prior period income/expenditure.

b) Income / Expenditure upto Rs. 10000 in each case pertaining to prior years is charged to the current year.

c) Extraordinary items, i.e., gains or losses which arise from events or transactions which are distinct from the ordinary activities of the Company and which are material are separately disclosed in the statement of accounts.

8. Foreign Currency Translations

a) All transactions in foreign currency other than those specified below are converted at the exchange rate prevailing on the respective dates of transactions.

b) Current assets ( other than inventories) and current liabilities are translated at the exchange rate prevailing on the date of Balance Sheet other than those covered with forward contract.

c) Long Term Investment, Inventories and Fixed Assets are carried at cost .

d) In case of foreign branch, translation of the financial statement is made on the following basis -

i) Revenue items except opening and closing inventories are converted at average rate. Opening and closing inventories are translated at the rate prevailing at the commencement and close respectively.

ii) Fixed Assets and depreciation are converted at the exchange rate on the date of the transactions.

iii) Other Current Assets and Current Liabilities are converted at the exchange rate as on the date of the Balance Sheet.

e) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account except as stated above.

f) Premium / discount arising at the inception of the forward exchange contracts entered into to hedge foreign currency risks are amortised as expense or income over the life of the contract. Exchange difference on such contracts are recognised in the Profit & Loss Account.

9. Accounting for Research & Development

a) Revenue Expenditure is shown under Primary Head of Accounts with the total of such expenditure being disclosed in the Notes.

b) Capital expenditure relating to research & development is treated in the same way as other fixed assets.

10. Treatment of Grant/Subsidy

a) Revenue grant/subsidy in respect of research & development expenditure is set off against respective expenditure.

b) Capital grant/subsidy against specific fixed assets is set off against the cost of those fixed assets.

c) When grant/ subsidy is received as compensation for extra cost associated with the establishment of manufacturing units or cannot be related otherwise to any particular fixed assets the grant/subsidy so received is credited to capital reserve. On expiry of the stipulated period set out in the scheme of grant/ subsidy the same is transferred from capital reserve to general reserve.

d) Revenue grant in respect of organisation of certain events is shown under Sundry Income and the related expenses there against under normal heads of expenditure.

11. Accounting for Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition , construction or production of assets which take substantial period of time to get ready for its intended use are capitalised as part of the cost of those assets . Other Borrowing Costs are recognised as expense in the period in which they are incurred.

12. Impairment of Assets

An assessment is made at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of the asset exceeds the recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on appropriate discount factor.

13. Cash Flow Statement

Cash Flow Statement, as per Accounting Standard - 3 issued by The Institute of Chartered Accountants of India, is prepared using the Indirect Method.

14. Segment Reporting

Segment Reporting is done as per Accounting Standard - 17 issued by The Institute of Chartered Accountants of India .The Company has identified business segment as its primary reporting segment .

15. Intangible Assets

(a) Expenditure incurred for acquiring intangible assets like software of Rs. 5,00,000 and above and license to use software per item of Rs. 25,000 and above, from which economic benefits will flow over a period of time, is capitalised and amortised over the estimated useful life of the asset or five years , whichever is earlier, from the time the intangible asset starts providing the economic benefit.

(b) In other cases, the expenditure is charged to revenue in the year in which the expenditure is incurred.

16. Provisions, Contingent Liabilities and Capital Commitments

(a) Provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made.

(b) Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Company.

(c) Capital commitments and Contingent liabilities disclosed are in respect of items which exceed Rs. 1,00,000 in each case.

(d) Contingent liabilities are considered only on conversion of show cause notices issued by various Government authorities into demand.